Use and Occupancy Clause
(Lease for Medical Use)

Summary

This use and occupancy clause may be included in a lease for a medical facility located in an office building, retail complex, or other property that does not traditionally house these facilities. The clause sets forth the permitted use of the premises and includes optional language prohibiting specific uses which may be objectionable to the landlord. This clause includes practical guidance, drafting notes, and an optional clause. The landlord will want the use clause to be narrowly drafted whereas the tenant will want the clause to be broad and allow for flexibility in case the tenant's use of the premises changes. This clause also includes language prohibiting the tenant from engaging in conduct that violates law or is likely to damage the building or disturb other tenants. Drafting notes provide tips for negotiating on behalf of the landlord and the tenant. The capitalized terms used in this clause should be conformed to the defined terms in the relevant medical use lease. For a list of resources addressing key issues related to healthcare organizations, see Healthcare Transactions, Licensing, and Regulation Resource Kit. For a full listing of key content covering office leasing, see Office Leasing Resource Kit, and for retail leasing, see Retail Leasing Resource Kit. For more on medical use clauses in commercial leases, see Commercial Leases for Medical Use. For a discussion of ambulatory surgical center leases, see Ambulatory Surgical Center Lease Agreements. For an access and security after-hours clause where the tenant is a medical use tenant under an office lease, see Access and Security After-Hours Clause (Lease for Medical Use). For an access and security after-hours clause where the tenant is a medical use tenant under a shopping center lease, see Access and Security After-Hours Clause (Shopping Center Lease for Medical Use Tenant).